Johnson & Johnson (JNJ - Free Report) closed at $139.78 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the world's biggest maker of health care products had gained 1.33% over the past month, lagging the Medical sector's gain of 1.97% and outpacing the S&P 500's gain of 0.34% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release. The company is expected to report EPS of $2.42, up 15.24% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.32 billion, down 2.43% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.60 per share and revenue of $81.20 billion. These totals would mark changes of +5.13% and -0.46%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JNJ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. JNJ currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, JNJ is holding a Forward P/E ratio of 16.16. This represents a premium compared to its industry's average Forward P/E of 14.58.
We can also see that JNJ currently has a PEG ratio of 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.